Saia Reports Fourth Quarter Earnings per Share of $0.53

JOHNS CREEK, GA--(Marketwired - Jan 30, 2015) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported record fourth quarter and full year 2014 results. Diluted earnings per share were $0.53 for the fourth quarter and include a $0.04 per share positive impact from tax credits for the full year 2014, enacted in the fourth quarter. The Company earned $0.32 per diluted share in the fourth quarter of 2013.

Fourth Quarter 2014 Compared to Fourth Quarter 2013 Results

Revenues were $310 million, an increase of 10.7%

Operating income increased 40% to $20.6 million compared to $14.7 million

Diluted earnings per share were $0.53 including $0.04 in tax credits enacted in the fourth quarter compared to $0.32

Operating ratio was 93.4 compared to 94.7

LTL tonnage increased 4.3% as LTL shipments were up 7.2% and average weight per LTL shipment fell by 2.7%

LTL revenue per hundredweight increased by 6.0%

"Demand in the quarter was consistent with seasonal expectations and I am pleased with the work of our team to deliver 98% on-time service in the quarter. Our significant year-over-year increase in earnings per share was achieved through our balanced approach towards adding tonnage at a reasonable price," said Saia President and Chief Executive Officer Rick O'Dell.

"We are proud of Saia's 90 year operating history celebrated in 2014 and it is gratifying to close that year with record revenue and earnings," O'Dell added.

2014 Results Compared to 2013 Results

LTL tonnage increased 6.3%, while yield improved 4.4%

Revenues were $1.3 billion compared to $1.1 billion

Operating income was $85.7 million compared to $74.4 million

Net income was $52.0 million compared to $43.6 million

Diluted earnings per share were $2.04 compared to $1.73, which included $0.04 in tax credits enacted in 2013 retroactive to 2012

Operating ratio was 93.3 compared to 93.5

Financial Position and Capital ExpendituresTotal debt was $83.0 million at December 31, 2014. Net of the Company's $4.4 million cash balance at quarter end, net debt to total capital was 17.7%. This compares to total debt of $76.9 million and net debt to total capital of 20.1% at December 31, 2013.

Net capital expenditures in 2014 were $112 million inclusive of equipment acquired with capital leases. This compares to $122 million in the prior year. The Company currently plans net capital expenditures in 2015 of approximately $125 million. This expenditure level reflects primarily replacement of revenue equipment, and investments in real estate projects and technology.

Conference CallManagement will hold a conference call to discuss quarterly results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 888-359-3624 or 719-325-2495 referencing conference ID #5368032. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company web site at www.saiacorp.com. A replay of the call will be offered two hours after the completion of the call through February 5, 2015 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.

The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release contains these types of statements, which are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.

Words such as "anticipate," "estimate," "expect," "project," "intend," "may," "plan," "predict," "believe," "should" and similar words or expressions are intended to identify forward-looking statements. Investors should not place undue reliance on forward-looking statements and the Company undertakes no obligation to update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management as of the date of this news release and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors, risks, assumptions and uncertainties include, but are not limited to, general economic conditions including downturns in the business cycle; the creditworthiness of our customers and their ability to pay for services; competitive initiatives and pricing pressures, including in connection with fuel surcharge; loss of significant customers; the Company's need for capital and uncertainty of the current credit markets; the possibility of defaults under the Company's debt agreements (including violation of financial covenants); possible issuance of equity which would dilute stock ownership; integration risks; the effect of litigation including class action lawsuits; cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; governmental regulations, including but not limited to Hours of Service, engine emissions, the "Compliance, Safety, Accountability" (CSA) initiative, compliance with legislation requiring companies to evaluate their internal control over financial reporting, changes in interpretation of accounting principles and Homeland Security; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company's workforce become unionized; cyber security risks; effectiveness of Company-specific performance improvement initiatives; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of recently enacted healthcare reform legislation and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC filings. As a result of these and other factors, no assurance can be given as to our future results and achievements. A forward looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur.

Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

December 31,

December 31,

2014

2013

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

4,367

$

159

Accounts receivable, net

128,367

117,937

Prepaid expenses and other

56,902

52,157

Total current assets

189,636

170,253

PROPERTY AND EQUIPMENT:

Cost

891,145

797,527

Less: accumulated depreciation

407,505

365,301

Net property and equipment

483,640

432,226

OTHER ASSETS

13,169

14,322

Total assets

$

686,445

$

616,801

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

42,388

$

50,799

Wages and employees' benefits

28,777

35,248

Other current liabilities

50,176

47,667

Current portion of long-term debt

9,138

7,143

Total current liabilities

130,479

140,857

OTHER LIABILITIES:

Long-term debt, less current portion

73,897

69,740

Deferred income taxes

78,406

69,916

Claims, insurance and other

36,757

31,496

Total other liabilities

189,060

171,152

STOCKHOLDERS' EQUITY:

Common stock

25

24

Additional paid-in capital

223,713

213,648

Deferred compensation trust

(2,189

)

(2,246

)

Retained earnings

145,357

93,366

Total stockholders' equity

366,906

304,792

Total liabilities and stockholders' equity

$

686,445

$

616,801

Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Years Ended December 31, 2014 and 2013

(Amounts in thousands, except per share data)

(Unaudited)

Fourth Quarter

Years

2014

2013

2014

2013

OPERATING REVENUE

$

309,648

$

279,655

$

1,272,321

$

1,139,094

OPERATING EXPENSES:

Salaries, wages and employees' benefits

162,854

144,019

639,633

572,487

Purchased transportation

22,214

17,952

99,610

72,975

Fuel, operating expenses and supplies

73,347

73,405

314,788

306,364

Operating taxes and licenses

9,027

8,530

36,028

36,513

Claims and insurance

6,912

7,409

37,563

25,494

Depreciation and amortization

14,758

13,799

59,022

51,564

Operating gains, net

(36

)

(151

)

(16

)

(721

)

Total operating expenses

289,076

264,963

1,186,628

1,064,676

OPERATING INCOME

20,572

14,692

85,693

74,418

NONOPERATING EXPENSES:

Interest expense

1,007

1,584

4,564

6,490

Other, net

(50

)

(37

)

(99

)

(217

)

Nonoperating expenses, net

957

1,547

4,465

6,273

INCOME BEFORE INCOME TAXES

19,615

13,145

81,228

68,145

Income tax expense

6,046

5,081

29,237

24,518

NET INCOME

$

13,569

$

8,064

$

51,991

$

43,627

Average common shares outstanding - basic

24,624

24,246

24,505

24,154

Average common shares outstanding - diluted

25,565

25,289

25,463

25,205

Basic earnings per share

$

0.55

$

0.33

$

2.12

$

1.81

Diluted earnings per share

$

0.53

$

0.32

$

2.04

$

1.73

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Years Ended December 31, 2014 and 2013

(Amounts in thousands)

(Unaudited)

Years

2014

2013

OPERATING ACTIVITIES:

Net cash provided by operating activities

$

102,170

$

101,312

Net cash provided by operating activities

102,170

101,312

INVESTING ACTIVITIES:

Acquisition of property and equipment

(97,750

)

(126,358

)

Proceeds from disposal of property and equipment

2,905

4,338

Net cash used in investing activities

(94,845

)

(122,020

)

FINANCING ACTIVITIES:

Repayment of long-term debt

(7,143

)

(22,143

)

Borrowings (repayment) of revolving credit agreement, net

(3,317

)

38,327

Proceeds from stock option exercises

7,623

4,948

Other financing activities

(280

)

(586

)

Net cash provided by (used in) financing activities

(3,117

)

20,546

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

4,208

(162

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

159

321

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

4,367

$

159

NON-CASH ITEMS:

Acquisition of property and equipment financed with capital leases

$

16,886

$

-

Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended December 31, 2014 and 2013

(Unaudited)

Fourth Quarter

Fourth Quarter

%

Amount/Workday

%

2014

2013

Change

2014

2013

Change

Workdays

62

62

Operating ratio

93.4%

94.7%

Tonnage (1)

LTL

926

888

4.3

14.94

14.32

4.3

TL

195

187

4.1

3.14

3.02

4.1

Shipments (1)

LTL

1,597

1,490

7.2

25.77

24.04

7.2

TL

28

27

4.5

0.45

0.43

4.5

Revenue/cwt. (2)

LTL

$

15.33

$

14.46

6.0

TL

$

6.16

$

5.73

7.5

Revenue/shipment (2)

LTL

$

177.72

$

172.22

3.2

TL

$

858.96

$

802.35

7.1

Pounds/shipment

LTL

1,159

1,191

(2.7

)

TL

13,940

13,992

(0.4

)

Length of Haul

773

746

3.7

(1)

In thousands

(2)

Revenue does not include the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy and other revenue.

Saia, Inc. and Subsidiaries

Financial Information

For the Years Ended December 31, 2014 and 2013

(Unaudited)

Year Over Year

Year Over Year

%

Amount/Workday

%

2014

2013

Change

2014

2013

Change

Workdays

253

253

Operating ratio

93.3%

93.5%

Tonnage (1)

LTL

3,902

3,670

6.3

15.42

14.51

6.3

TL

853

708

20.6

3.37

2.80

20.6

Shipments (1)

LTL

6,646

6,260

6.2

26.27

24.74

6.2

TL

122

102

19.1

0.48

0.40

19.1

Revenue/cwt. (2)

LTL

$

14.96

$

14.33

4.4

TL

$

5.87

$

5.84

0.5

Revenue/shipment (2)

LTL

$

175.71

$

168.06

4.5

TL

$

821.46

$

807.21

1.8

Pounds/shipment

LTL

1,174

1,173

0.1

TL

13,993

13,821

1.2

Length of Haul

763

741

3.0

(1)

In thousands

(2)

Revenue does not include the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy and other revenue.